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U.S. seeks closer oversight of student loan firms
Source: Associated Press
U.S. seeks closer oversight of student loan firms
Daniel Wagner, AP 11a.m. EDT March 16, 2013
WASHINGTON (AP) — The government's consumer finance watchdog wants stricter oversight of companies that collect and log student loan payments.
The Consumer Financial Protection Bureau proposed Thursday that it supervise the activities of nonbank student loan companies — a more stringent form of regulation than these companies have faced in the past. The bureau says the scrutiny is needed to ensure borrowers aren't mistreated as the industry grows and more people fall behind on their payments.
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Nonbank loan servicers like Sallie Mae collect payments for both private and government-backed student loans. Borrowers have complained that the companies lose paperwork, fail to apply payments and provide poor customer service.
The bureau wants to oversee the seven biggest nonbank student loan collection companies. Together, they handle the accounts of 49 million people with student loans. The CFPB says that accounts for "most of the activity" in the market.
[font size=1]-snip-[/font]
Daniel Wagner, AP 11a.m. EDT March 16, 2013
WASHINGTON (AP) — The government's consumer finance watchdog wants stricter oversight of companies that collect and log student loan payments.
The Consumer Financial Protection Bureau proposed Thursday that it supervise the activities of nonbank student loan companies — a more stringent form of regulation than these companies have faced in the past. The bureau says the scrutiny is needed to ensure borrowers aren't mistreated as the industry grows and more people fall behind on their payments.
[font size=1]-snip-[/font]
Nonbank loan servicers like Sallie Mae collect payments for both private and government-backed student loans. Borrowers have complained that the companies lose paperwork, fail to apply payments and provide poor customer service.
The bureau wants to oversee the seven biggest nonbank student loan collection companies. Together, they handle the accounts of 49 million people with student loans. The CFPB says that accounts for "most of the activity" in the market.
[font size=1]-snip-[/font]
Read more: http://www.usatoday.com/story/money/personalfinance/2013/03/16/student-loan-oversight/1990871/
